Strategies Applied by Naivas Supermarket Limited to Gain Competitive Advantage in Kenya

Abstract

Competitive advantage is the essential in any business that thrives to excel in the constant turbulent business environment. With post Covid – 19 effects, only the businesses that have applied different competitive strategies have been able to survive. Application of the different strategies both internally and externally influences the degree of gaining the competitive edge. The retail industry in Kenya has experienced massive growth and further has experienced cut throat competition with renowned giants including Nakumatt unable to maintain its market share and collapsed. Significantly, other champions including Tuskys, have closed most of their retail outlets due to the competition. The research project is a case study which seeks to establish the strategies that Naivas supermarket has adopted to gain competitive advantage in Kenya even after the Covid-19 pandemic. Data was collected through primary data by using interview schedules or guides written in open ended questions that allowed the respondents exhibit their opinions and views without limitations. Five senior managers who are the core decision makes in application of strategy for the firm were interviewed. Secondary data from internet, newspapers and review of internal documents was also used. Content analysis was used to establish how partnership strategy, technology leverage, human resource development, branding and brand positioning, excellent customer service strategies, Branch expansion, excellent customer service have been used to help Naivas supermarket gain competitive advantage. The study concluded that Porters’ theory of competitive advantage, Institutional Theory and Dynamic capabilities theory have been used by Naivas supermarket understanding the external environment while utilizing maximumly the resources available to attain a competitive edge. The study found out that Naivas has differentiated its customer shopping experience which has created a regional and global brand and made it a trusted business were investors are willing to invest in the business. Focus on the working-class consumer, providing premium products, services, and experiences, and pricing them at a level that is consistent with world-class service were also strategies that Naivas applied. The study recommends that more research be done on all the supermarkets in Kenya for comparison purposes as the results of the findings were just from one supermarket.